The stock market dived 21.72 points last week on Nepal Rastra Bank’s
(NRB) directive to banks and financial institutions (BFIs) to maintain 5
percent provisioning for “good but suspicious” loans.
The market, which opened at 964.12 points on Monday, lost points throughout the week.
The NRB directive invited complaints from bankers as they argue it would hit their profitability.
Bishnu Raj Ojha, manager director of Dipshikha Dhitopatra Karobar Company, said investors’ expectation from the banking sector lowered due to a possible impact of the directive on profits. “Non-settlement of the political imbroglio also continued impact investor confidence,” he said.
The central bank has told BFIs to maintain 5 percent provisioning even in good loans if they looked suspicious due to factors such as irregular payment.
Almost all the trading groups posted losses last week. The Hotels group, down 80.56 points, was the biggest loser. It was followed by ‘others’, insurance companies, hydropower companies, commercial banks, development banks, manufacturing and finance companies. The ‘trading’ group remained stable at 196.93 points. The sensitive index that measures the performance of blue chips fell 5 points to close at 200.19 points.
Nepal Life Insurance Company posted the highest individual turnover of Rs 71.58 million. Global IME Bank (promoter’s shares), Everest Insurance, Prabhu Bank and Chilime Hydropower rounded out the top five companies in terms of the turnover. Global IME Bank topped in terms of number of shares traded—264,000 units.
The overall market transaction was up 23.52 percent to Rs1.05 billion. The number of traded rose to 2,543,010 units from 2,172,750 units. Meanwhile, the exchange listed a total of 5,473,685 unit bonus shares of NLG Insurance, Laxmi Bank and Lumbini Bank last week.
source: the kathmandu post,29 March 2015
LINK
The market, which opened at 964.12 points on Monday, lost points throughout the week.
The NRB directive invited complaints from bankers as they argue it would hit their profitability.
Bishnu Raj Ojha, manager director of Dipshikha Dhitopatra Karobar Company, said investors’ expectation from the banking sector lowered due to a possible impact of the directive on profits. “Non-settlement of the political imbroglio also continued impact investor confidence,” he said.
The central bank has told BFIs to maintain 5 percent provisioning even in good loans if they looked suspicious due to factors such as irregular payment.
Almost all the trading groups posted losses last week. The Hotels group, down 80.56 points, was the biggest loser. It was followed by ‘others’, insurance companies, hydropower companies, commercial banks, development banks, manufacturing and finance companies. The ‘trading’ group remained stable at 196.93 points. The sensitive index that measures the performance of blue chips fell 5 points to close at 200.19 points.
Nepal Life Insurance Company posted the highest individual turnover of Rs 71.58 million. Global IME Bank (promoter’s shares), Everest Insurance, Prabhu Bank and Chilime Hydropower rounded out the top five companies in terms of the turnover. Global IME Bank topped in terms of number of shares traded—264,000 units.
The overall market transaction was up 23.52 percent to Rs1.05 billion. The number of traded rose to 2,543,010 units from 2,172,750 units. Meanwhile, the exchange listed a total of 5,473,685 unit bonus shares of NLG Insurance, Laxmi Bank and Lumbini Bank last week.
source: the kathmandu post,29 March 2015
LINK
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